Apply Georgia HB463 (2025-2026) tax cuts and refactor GA flat-tax rate structure

changelog.d/ga-hb463-2026-tax-cuts.changed.md

@@ -0,0 +1 @@
+Apply Georgia HB463 (2025-2026): cut the flat individual income tax rate to 4.99%, raise the standard deduction to $30,000 joint / $15,000 single, raise the dependent exemption to $5,000, increase the age-65+ retirement income exclusion to $70,000 in 2027, and add qualified-overtime and cash-tip exclusions for tax years 2026-2028.

policyengine_us/parameters/gov/states/ga/tax/income/agi/exclusions/overtime/cap.yaml

@@ -0,0 +1,12 @@
+description: Georgia caps the qualified overtime compensation exclusion at this amount per full-time hourly employee.
+
+values:
+  2026-01-01: 1_750
+
+metadata:
+  period: year
+  unit: currency-USD
+  label: Georgia qualified overtime exclusion cap
+  reference:
+    - title: Georgia HB463 (2025-2026), Section 2-4 adding O.C.G.A. § 48-7-27(a)(16)(A)
+      href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=6

policyengine_us/parameters/gov/states/ga/tax/income/agi/exclusions/retirement/cap/older.yaml

@@ -1,9 +1,9 @@
-description: Georgia subtracts this higher retirement income amount for filers meeting the older age threshold.  
+description: Georgia subtracts this higher retirement income amount for filers meeting the older age threshold.
 metadata:
-  label: Georgia retirement income exclusion older cap 
+  label: Georgia retirement income exclusion older cap
   period: year
   unit: currency-USD
-  reference: 
+  reference:
   - title: 2021 IT-511 Individual Income Tax Booklet - Subtractions(1)
     href: https://dor.georgia.gov/document/booklet/2021-it-511-individual-income-tax-booklet/download#page=15
   - title: 2022 IT-511 Individual Income Tax Booklet - Subtractions(1)
@@ -14,5 +14,11 @@ metadata:
     href: https://advance.lexis.com/documentpage/?pdmfid=1000516&crid=fb5db531-a80f-4790-bddb-eefc8327ef60&config=00JAA1MDBlYzczZi1lYjFlLTQxMTgtYWE3OS02YTgyOGM2NWJlMDYKAFBvZENhdGFsb2feed0oM9qoQOMCSJFX5qkd&pddocfullpath=%2Fshared%2Fdocument%2Fstatutes-legislation%2Furn%3AcontentItem%3A65D2-CDH3-CGX8-044N-00008-00&pdcontentcomponentid=234186&pdteaserkey=sr1&pditab=allpods&ecomp=8s65kkk&earg=sr1&prid=66f02b0a-c5ae-4162-9535-127751546807
   - title: 2025 IT-511 Individual Income Tax Booklet - Subtractions(1)
     href: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download#page=21
+  - title: Georgia HB463 (2025-2026), Section 2-3 amending O.C.G.A. § 48-7-27(a)(5)(A) and adding (xiv)
+    href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=5
+# Georgia HB463 (2025-2026), Section 2-3 raises the retirement income
+# exclusion cap for filers age 65 or older from $65,000 to $70,000 effective
+# tax year 2027. This is not subject to revenue triggers.
 values:
   2012-01-01: 65_000
+  2027-01-01: 70_000

policyengine_us/parameters/gov/states/ga/tax/income/agi/exclusions/tips/cap.yaml

@@ -0,0 +1,12 @@
+description: Georgia caps the cash tip exclusion at this amount per employee in a customarily-tipped occupation.
+
+values:
+  2026-01-01: 1_750
+
+metadata:
+  period: year
+  unit: currency-USD
+  label: Georgia cash tip exclusion cap
+  reference:
+    - title: Georgia HB463 (2025-2026), Section 2-4 adding O.C.G.A. § 48-7-27(a)(17)(A)
+      href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=7

policyengine_us/parameters/gov/states/ga/tax/income/deductions/standard/amount.yaml

@@ -5,7 +5,7 @@ metadata:
   unit: currency-USD
   breakdown:
   - filing_status
-  reference: 
+  reference:
   - title: 2021 IT-511 Individual Income Tax Booklet - page 12 - FORM 500, LINE 11a
     href: https://dor.georgia.gov/document/booklet/2021-it-511-individual-income-tax-booklet/download
   - title: 2022 IT-511 Individual Income Tax Booklet - - page 12 - FORM 500, LINE 11a
@@ -18,23 +18,51 @@ metadata:
     href: https://dor.georgia.gov/document/document/2024-it-511-individual-income-tax-booklet/download
   - title: 2025 IT-511 Individual Income Tax Booklet - page 16 - FORM 500, LINE 11
     href: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download#page=16
+  - title: Georgia HB463 (2025-2026), Section 2-3 amending O.C.G.A. § 48-7-27(a)(1)(B)
+    href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=3
+# Georgia HB463 (2025-2026), Section 2-3 raises the JOINT standard deduction
+# from $24,000 to $30,000 and the SINGLE / HEAD_OF_HOUSEHOLD / SEPARATE
+# standard deduction from $12,000 to $15,000 effective tax year 2026.
+#
+# The bill's amended § 48-7-27(a)(1)(B) text enumerates only two filing-status
+# tiers — "(i) a married couple filing a joint return" and "(ii) a single
+# taxpayer, head of household, or married taxpayer filing a separate return."
+# SURVIVING_SPOUSE (qualifying widow/er) is not enumerated. We map
+# SURVIVING_SPOUSE to the JOINT tier ($30,000 in 2026) consistent with federal
+# practice — for the two years following a spouse's death, federal qualifying
+# widow(er)s use the joint standard deduction and joint rate schedule. The
+# pre-2024 historical entries for SURVIVING_SPOUSE (matching SINGLE/HoH)
+# predate this clarification and are preserved for backward compatibility.
+#
+# Bill also provides for prospective annual increases beginning 2027-01-01
+# (+$750 joint, +$375 single/HoH/separate per year, capped at $36,000 /
+# $18,000), but each increase is subject to the revenue triggers defined in
+# O.C.G.A. § 48-7-27(a)(1.1) (Governor's revenue estimate growth, prior-year
+# net revenue, and Revenue Shortfall Reserve coverage of the projected revenue
+# loss). The model does not predict whether the triggers will be met in any
+# given year, so the prospective annual increases are NOT modeled here.
 JOINT:
   2021-01-01: 6_000
   2022-01-01: 7_100
   2024-01-01: 24_000
+  2026-01-01: 30_000
 HEAD_OF_HOUSEHOLD:
   2021-01-01: 4_600
   2022-01-01: 5_400
   2024-01-01: 12_000
+  2026-01-01: 15_000
 SINGLE:
   2021-01-01: 4_600
   2022-01-01: 5_400
   2024-01-01: 12_000
+  2026-01-01: 15_000
 SEPARATE:
   2021-01-01: 3_000
   2022-01-01: 3_550
   2024-01-01: 12_000
+  2026-01-01: 15_000
 SURVIVING_SPOUSE:
   2021-01-01: 4_600
   2022-01-01: 5_400
   2024-01-01: 12_000
+  2026-01-01: 30_000

policyengine_us/parameters/gov/states/ga/tax/income/exemptions/dependent.yaml

@@ -1,7 +1,17 @@
 description: Georgia issues the following exemption amount for each dependent.
+# Georgia HB463 (2025-2026), Section 2-2 raises the per-dependent exemption
+# from $4,000 to $5,000 effective tax year 2026.
+#
+# Bill also provides for prospective $125 annual increases beginning
+# 2027-01-01, capped at $6,000, subject to the same revenue triggers that
+# delay the standard-deduction increases (Governor's revenue estimate, prior-
+# year net revenue, Revenue Shortfall Reserve coverage). The model does not
+# predict whether the triggers will be met, so the prospective annual
+# increases are NOT modeled here.
 values:
   2003-01-01: 3_000
   2024-01-01: 4_000
+  2026-01-01: 5_000
 metadata:
   period: year
   unit: currency-USD
@@ -21,3 +31,5 @@ metadata:
     href: https://gov.georgia.gov/press-releases/2024-04-18/gov-kemp-signs-historic-tax-cut-package-law # Not mentioned in legal code
   - title: 2025 IT-511 Individual Income Tax Booklet - page 17 - FORM 500, LINE 14
     href: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download#page=17
+  - title: Georgia HB463 (2025-2026), Section 2-2 amending O.C.G.A. § 48-7-26(b)
+    href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=3

policyengine_us/parameters/gov/states/ga/tax/income/main/flat_applies.yaml

@@ -0,0 +1,19 @@
+description: Georgia uses the flat-tax structure when true; otherwise the per-filing-status progressive bracket structure applies.
+
+values:
+  2021-01-01: false
+  2024-01-01: true
+
+metadata:
+  unit: bool
+  period: year
+  label: Georgia flat-tax structure in effect
+  reference:
+    - title: Official Code of Georgia Annotated | O.C.G.A. § 48-7-20(a.1)
+      href: https://law.justia.com/codes/georgia/2022/title-48/chapter-7/article-2/section-48-7-20/
+    - title: Georgia HB1015 (2023-2024), Section 1 - flat-tax transition
+      href: https://www.legis.ga.gov/legislation/66260
+    - title: 2025 IT-511 Individual Income Tax Booklet, Page 9
+      href: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download#page=9
+    - title: Georgia HB463 (2025-2026), Section 2-1 amending O.C.G.A. § 48-7-20(a.1)
+      href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=2

policyengine_us/parameters/gov/states/ga/tax/income/main/flat_rate.yaml

@@ -0,0 +1,32 @@
+description: Georgia taxes all taxable income at this flat rate when gov.states.ga.tax.income.main.flat_applies is true (otherwise the per-filing-status progressive bracket structure applies).
+# Georgia HB1015 (2023-2024) replaced the progressive bracket structure
+# with a flat rate beginning tax year 2024. Subsequent reductions are made
+# by amending O.C.G.A. section 48-7-20(a.1).
+#
+# Georgia HB463 (2025-2026), Section 2-1 lowers the flat rate from 5.19%
+# to 4.99% effective tax year 2026. The bill also provides for prospective
+# 0.125% annual rate cuts (target 3.99%) subject to the revenue triggers
+# in O.C.G.A. section 48-7-20(a.1)(2). The model does not predict whether
+# the triggers will be met, so the prospective annual cuts are NOT
+# modeled here.
+
+values:
+  2024-01-01: 0.0539
+  2025-01-01: 0.0519
+  2026-01-01: 0.0499
+
+metadata:
+  unit: /1
+  period: year
+  label: Georgia flat income tax rate
+  reference:
+    - title: Georgia Department of Revenue - Tax Tables & Georgia Tax Rate Schedule
+      href: https://dor.georgia.gov/tax-tables-georgia-tax-rate-schedule
+    - title: Official Code of Georgia Annotated | O.C.G.A. § 48-7-20(a.1)
+      href: https://law.justia.com/codes/georgia/2022/title-48/chapter-7/article-2/section-48-7-20/
+    - title: Georgia HB1015 (2023-2024), Section 1 - flat-tax transition
+      href: https://www.legis.ga.gov/legislation/66260
+    - title: 2025 IT-511 Individual Income Tax Booklet, Page 9
+      href: https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download#page=9
+    - title: Georgia HB463 (2025-2026), Section 2-1 amending O.C.G.A. § 48-7-20(a.1)
+      href: https://www.legis.ga.gov/api/legislation/document/20252026/249080#page=2

policyengine_us/parameters/gov/states/ga/tax/income/main/head_of_household.yaml

@@ -26,35 +26,23 @@ brackets:
       2021-01-01: 0
     rate:
       2021-01-01: 0.01
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 1_000
     rate:
       2021-01-01: 0.02
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 3_000
     rate:
       2021-01-01: 0.03
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 5_000
     rate:
       2021-01-01: 0.04
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 7_000
     rate:
       2021-01-01: 0.05
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 10_000
     rate:
       2021-01-01: 0.0575
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519

policyengine_us/parameters/gov/states/ga/tax/income/main/joint.yaml

@@ -27,35 +27,23 @@ brackets:
       2021-01-01: 0
     rate:
       2021-01-01: 0.01
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 1_000
     rate:
       2021-01-01: 0.02
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 3_000
     rate:
       2021-01-01: 0.03
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 5_000
     rate:
       2021-01-01: 0.04
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 7_000
     rate:
       2021-01-01: 0.05
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 10_000
     rate:
       2021-01-01: 0.0575
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519

policyengine_us/parameters/gov/states/ga/tax/income/main/separate.yaml

@@ -26,35 +26,23 @@ brackets:
       2021-01-01: 0
     rate:
       2021-01-01: 0.01
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 500
     rate:
       2021-01-01: 0.02
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 1_500
     rate:
       2021-01-01: 0.03
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 2_500
     rate:
       2021-01-01: 0.04
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 3_500
     rate:
       2021-01-01: 0.05
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 5_000
     rate:
       2021-01-01: 0.0575
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519

policyengine_us/parameters/gov/states/ga/tax/income/main/single.yaml

@@ -26,35 +26,23 @@ brackets:
       2021-01-01: 0
     rate:
       2021-01-01: 0.01
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 750
     rate:
       2021-01-01: 0.02
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 2_250
     rate:
       2021-01-01: 0.03
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 3_750
     rate:
       2021-01-01: 0.04
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 5_250
     rate:
       2021-01-01: 0.05
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 7_000
     rate:
       2021-01-01: 0.0575
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519

policyengine_us/parameters/gov/states/ga/tax/income/main/surviving_spouse.yaml

@@ -27,35 +27,23 @@ brackets:
       2021-01-01: 0
     rate:
       2021-01-01: 0.01
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 1_000
     rate:
       2021-01-01: 0.02
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 3_000
     rate:
       2021-01-01: 0.03
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 5_000
     rate:
       2021-01-01: 0.04
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 7_000
     rate:
       2021-01-01: 0.05
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519
   - threshold:
       2021-01-01: 10_000
     rate:
       2021-01-01: 0.0575
-      2024-01-01: 0.0539
-      2025-01-01: 0.0519